realtor.com March 2024 Housing Market Update

In the following brief video, from realtor.com, we can an update that gives you the relevant economic and real estate information you need to know to navigate the housing market as a homebuyer, home seller, or industry professional.

In March, Chief Economist Danielle Hale highlights still-strong economic readings including the latest labor market and inflation data. She hones in on key inflation metrics and how shelter costs are contributing. She notes that shelter costs have decelerated, and rents are falling annually, which should eventually be reflected in the inflation data.

Danielle also reviews the thinking from the March Fed meeting and how the committee’s economic projections signaled that interest rates may remain ‘higher for longer’, dependent on incoming data. She notes that mortgage rates could ease, mirroring the decline in 10-year treasury yields.

Zillow Names This Year’s Best Markets For First-time Home Buyers

Top markets for first-time home buyers offer affordable options and peers living nearby

  • St. Louis is the top major market in the U.S. for first-time home buyers. 
  • Half of the 10 best markets for first-time buyers are in the Midwest. 
  • First-time buyers made up half of all home buyers last year, the highest share since at least 2017. 

Seattle, WA – April 4, 2024 (PRNewswire) First-time home buyers in 2023 accounted for the largest share of home purchases in years. A new Zillow® analysis names this year’s best markets for first-time home buyers, where their dollars go further and starter homes are relatively plentiful. 

First-time buyers made up half of all home buyers last year, according to Zillow’s Consumer Housing Trends Report. That’s the highest share in the report’s history, which dates back to 2018, and up from a low of 37% in 2021. The “rate lock” effect — occurring when homeowners are financially incentivized to keep their current home because of the low rate on their current mortgage — has kept some would-be repeat buyers on the sidelines. 

“Affording a home is a tough hill to climb, and it’s especially steep for those buying their first home. Headwinds like mortgage rates, low inventory and rising rents are still strong, but easing,” said Zillow Senior Economist Orphe Divounguy. “Attractive homes are moving fast, so those looking to buy this spring should get their finances in order now, including getting pre-approved for a home loan. The increase in new listings this spring, due both to new construction and to more homeowners choosing to sell, will give buyers more options and help to ease price growth. The housing train is slowing down just enough to give more first-time buyers an opportunity to hop on board.”

Top 10 markets for first-time home buyers in 2024 

  1. St. Louis
  2. Detroit
  3. Minneapolis
  4. Indianapolis
  5. Austin
  6. Pittsburgh
  7. San Antonio
  8. Birmingham
  9. Kansas City
  10. Baltimore

Zillow’s ranking of the best markets for first-time buyers is based on rent affordability, the share of for-sale listings a typical household can comfortably afford, how stiff the competition is expected to be for those affordable listings, and how many similar-age households1 live in the area. 

The top two markets in Zillow’s ranking, St. Louis and Detroit, score well in terms of affordability — both for rental affordability as a prospective buyer builds up savings for a down payment, and for the number of affordable homes available to buy. Austin, while not the most affordable housing market on this list, ranks first in the number of similar-age households living there with which a buyer can build a community. 

First-time buyer tips and tricks
Zillow has gathered tools on one easy-to-navigate web page to help aspiring first-time buyers make the leap to homeownership, from getting finances in tip-top shape to hiring the right real estate agent who can help a buyer win a home. 

Zillow’s affordability calculator can help buyers understand their price range, including some of the hidden costs of homeownership that are often overlooked. 

It’s important for first-time buyers to understand how their credit score can impact their loan options and costs. A top loan officer can help a buyer understand all of their options, such as whether “paying points” or an adjustable rate mortgage might make sense for a buyer’s specific financial situation. 

Renters who pay their landlords through Zillow can now help build or enhance their credit history by opting in to rent payment reporting, with on-time payments reported to a major national credit bureau. 

A down payment is often the biggest financial hurdle for a first-time buyer. Those without enough money saved for a 20% down payment shouldn’t fret — nearly half of buyers put down less than 20%. Zillow displays down payment assistance programs a buyer may be eligible for on all for-sale listings. 

Metro AreaRent
Affordability
Share of
Affordable Listings
Affordable Listings Per
100 Renters
Share of Similar-Age
Households
St. Louis19.9 %66.7 %3.426.0 %
Detroit21.5 %63.6 %4.024.3 %
Minneapolis19.8 %48.4 %2.528.1 %
Indianapolis22.0 %50.4 %2.628.9 %
Austin20.3 %23.0 %1.333.6 %
Pittsburgh21.9 %62.9 %3.724.4 %
San Antonio22.6 %32.8 %2.630.6 %
Birmingham22.4 %47.5 %4.225.3 %
Kansas City21.0 %50.6 %2.227.2 %
Baltimore22.2 %56.4 %2.327.1 %
Ages 29–43. Zillow Research shows nearly half of first-time buyers are in this age range.

Methodology
Zillow’s 2024 list of the best markets for first-time buyers is based on four metrics: 

  • Rent affordability, as defined by the share of median household income spent on rent.
  • The share of available for-sale inventory on Zillow that the median household can comfortably afford, spending no more than 30% of income on the estimated monthly mortgage cost, assuming 5% down and 6.94% mortgage interest rate. 
  • The ratio of affordable for-sale inventory to renter households. More inventory per renter household is an indicator of less competition for each listing. 
  • The share of households ages 29–43. More households of similar age mean a higher score in Zillow’s ranking. 

About Zillow Group
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences. 

Zillow Group’s affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+, Spruce® and Follow Up Boss®. 

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

SOURCE Zillow

NAR Honors Fair Housing Month, Announces 2024 Fair Housing Champion Award Winners

Award recipients celebrated for contributions to communities and efforts in promoting homeownership to individuals from all backgrounds

Washington, D.C. – April 3, 2024 (nar.realtor) The National Association of Realtors® and Realtor.com® today honored three winners of the Fair Housing Champion Award during NAR’s Fair Housing Month event, “Many Rivers to Cross: America’s Ongoing Fair Housing Journey.” Honorees received recognition for their efforts to advance fair housing and expand homeownership in their communities.

With the Fair Housing Champion Award, Realtors® are recognized for going above and beyond to support buyers and communities that have faced housing discrimination, advocating for accessible and affordable housing opportunities, and promoting consumer and Realtor® fair housing education. Sponsored by Realtor.com®, the award provides a $5,000 prize that winners can dedicate to a housing-related nonprofit organization of their choice.

“NAR’s mission to promote the growth of prosperous, diverse, and inclusive communities across the United States is more resilient than ever,” stated NAR President Kevin Sears. “Affordability and fair housing remain the most significant challenges confronting the real estate industry today, and I am immensely proud of the dedication displayed by our award recipients in expanding access to homeownership. Their leadership has paved the way for positive change, inspiring others to join in our collective efforts.”

This year’s winners include:

Eve B. Lee, a Lake County, Illinois, community leader, has spent more than 45 years expanding housing opportunities.

Shadrick Bogany, a prominent figure in Houston real estate, advocates for homeownership as a means of empowerment, particularly within marginalized communities.

Paul Yorkis, as president of the Massachusetts Association of Realtors®, successfully advocated for the state government to translate standard real estate forms into languages other than English.

“Having someone to help consumers overcome the barriers of buying a home and advocate for them in the transaction is crucial to opening more doors to the many benefits of homeownership,” said Realtor.com® Chief Marketing Officer Mickey Neuberger. “We are proud to support the professionalism of Realtors® and especially these Fair Housing Champions, who are making a real difference by helping expand housing opportunities in their communities.”

Alexia Smokler, director of NAR’s fair housing policy & programs, welcomed Patrice Ficklin, the founding director of the CFPB’s office of fair lending & equal opportunity, to the fair housing event to discuss the significance of the Equal Credit Opportunity Act (ECOA) on its 50th anniversary. The discussion highlighted ECOA’s role in advancing women’s access to credit and mortgage lending by prohibiting discrimination based on sex and marital status. Before ECOA, women faced significant obstacles in obtaining credit due to discriminatory practices such as requiring male co-signers and devaluing women’s income.

The conversation also delved into the amendments made to ECOA in 1976, expanding protected classes and introducing special-purpose credit programs while addressing contemporary challenges such as digital discrimination and unjust lending restrictions based on criminal history or public assistance income.

Ficklin concluded, “In the past 50 years, we’ve come a long way from women being interrogated by lenders on their family planning and marriage plans to qualify for credit, but the work to ensure fairness and equity is far from over. We cannot solve these problems alone or in a vacuum, but I am hopeful and encouraged by our collective efforts to advance the important yet unfinished work of advancing economic justice.”

NAR’s Vice President of Policy Advocacy, Bryan Greene, welcomed Thomas Sugrue, a preeminent civil rights historian, to discuss the activism preceding the 1964 Civil Rights Act, whose 60th anniversary NAR commemorated at the event. Their discussion emphasized the ongoing struggle against racial discrimination in various aspects of society, such as in the workplace, education, and housing. While the 1964 Civil Rights Act addressed some forms of discrimination, including in public spaces and employment, it notably did not confront issues in the private housing market. That didn’t happen until 1968, with the passage of the Fair Housing Act, seven days after the assassination of Dr. Martin Luther King, Jr.

Sugrue highlighted that individuals’ housing choices today are still constrained by discrimination and other racial barriers beyond their control. “We often turn a blind eye to it or just assume that housing segregation is a result of individual choice,” he said. “It’s not.” The discussion underscored the need for strengthened enforcement of existing laws, greater awareness of ongoing discrimination, and interventions to address systemic barriers to fair housing access.

The National Association of Realtors® is America’s largest trade association, representing 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics.